BISMARCK, ND (KXNET) — North Dakota Governor Kelly Armstrong delivered his first State of the State Address to a joint session of the 69th Legislative Assembly Tuesday afternoon, outlining a proposed property tax relief and reform plan that would gradually eliminate property taxes for most primary residences within the next 10 years. Armstrong thanked lawmakers for their work in creating the property tax plan and urged them to make it the first piece of legislation they send to his desk this session. “We can afford it. The people of North Dakota are demanding it. This plan is real relief and it is real reform,” Armstrong said. “It’s responsible, achievable and durable. It creates Legacy Fund buy-in. And it is the single most impactful thing we can do for the citizens of North Dakota this session.” The tax relief portion of the plan is twofold: It will increase the existing Primary Residence Credit from $500 to $1,000 per year at a cost to the state’s general fund of about $310 million for the 2025-27 biennium. It will use a dedicated stream of Legacy Fund earnings – $173 million next biennium – to provide additional funds to the primary residence credit, initially $550 per residence. The total combined primary residence relief will be $1,550 per year in the 2025-27 biennium and at least $2,000 dollars per year in the 2027-29 biennium. The plan also provides other property tax reform by capping future increases in local property tax budgets at 3% per year. If the entire 3% increase isn’t used, the remainder of it can be carried forward for up to five years. This will encourage cities, counties, schools and park districts to budget prudently and plan ahead, the governor said. Other topics touched on by Armstrong in his address: The governor announced the creation of a new Cabinet position, Commissioner of Recovery and Re-entry, naming Jonathan Holth as the first commissioner. Holth served as managing director of Recovery Reinvented under the administration of former Governor Doug Burgum and First Lady Kathryn Burgum. As for prison overcrowding issues currently affecting the state, Armstrong said he will propose a "turnkey solution" in his executive budget address next week. Armstrong emphasized the need to work with industry to build out pipeline infrastructure to move natural gas out of the Bakken and allow additional growth in oil production. Armstrong said he supports proposed legislation to create a task force that will review the state’s more than 150 boards and commissions and recommend which ones can be dissolved or combined and which are essential to the core functions of government. To highlight his commitment to the effort, Armstrong said he signed an executive order dissolving five groups that hadn’t met in over a calendar year. Armstrong said his budget will support Education Savings Accounts and allow for the creation of public charter schools. He also proposed increasing state funding to $50 million for higher education challenge grants, which support student scholarships and are matched 2-to-1 by private dollars. Armstrong called for continued collaboration with the five tribal nations in North Dakota, saying, “Their challenges are our challenges. Their successes are our successes.” “North Dakota is not broken. It does not need fixing. We are home to the best people on Earth. The State of the State is as resilient as its people,” Armstrong said as he concluded his address. "Our sole focus should be to make their lives easier – to promote policies that make North Dakota the best place to live, work and raise a family.” A copy of the governor's prepared address is below. 2025-State-of-the-State-Address-for-websiteDownload